Displaying items by tag: Canada

Canada: The Cement Association of Canada has supported emission reduction schemes in Alberta and Ontario. The Albertan provincial government has released its overarching policy framework for the Output-based Allocation System and the Ontario government has run its fourth and final cap and trade auction before formally linking with California and Quebec in 2018.

The introduction of an Output-based Allocations (OBA) System in January 2018 will transition Alberta’s regulated facilities from the current Specified Gas Emitters Regulation (SGER). The OBA will set an industry specific performance benchmark for emissions-intensive, trade-exposed industries (EITEs), which includes the province’s two cement plants, Lafarge in Exshaw and Lehigh in Edmonton. The benchmark combined with output-based allocations is intended to drive best-in-class performance while maintaining the competitiveness of industries in Alberta.

Ontario raised US$330m bringing total proceeds from the system to date to around US$1.5bn. The proceeds are to be reinvested into initiatives that will further reduce greenhouse gas emissions.

“From the cement industry’s perspective, the framework demonstrates that the Alberta government understands the pressures EITE industries face to remain competitive in the global market. Climate change is the single most important issue facing our society today and Alberta’s Climate Leadership Plan lays the foundation for industries to play a major role in assisting government in meeting its 2030 targets and transitioning to a low carbon economy,” said Michael McSweeney, President and chief executive officer (CEO) of the Cement Association of Canada.

With respect to Ontario he added that the Canadian cement industry believes that cap and trade systems are the most effective means of delivering environmental results while putting a price on carbon. “Linkage with California and Quebec is also an important feature of the Ontario system: the broader the market, the more likely it will be that price will reflect the true incremental cost of reducing emission,” said McSweeney.

Canada: Representatives from the Canadian cement and concrete industries have met with government ministers, members of parliament, senators and civil servants in Ottawa, Ontario as part of a two-day advocacy event.

"The cement and concrete industry is uniquely positioned to help all levels of government in Canada achieve their climate change priorities, while also ensuring best value for money invested," said Michael McSweeney, president and chief executive officer (CEO) of the Cement Association of Canada.

More than 60 industry delegates hailing from across the country and industries have gathered for the event. The delegation includes the CEOs of Canada's cement industry and representatives from the ready mixed concrete, insulated concrete forms, masonry, precast concrete and precast concrete pipe sectors. They hope to highlight the economic and lifecycle benefits of their products to legislators.

Canada: The New Democratic Party has called for a ban of burning tyres in Nova Scotia. The opposition political party held a news conference with opponents of the government's decision in July 2017 to approve a one-year pilot project allowing Lafarge Canada to burn tyres for energy at the company's Brookfield cement plant, according to the Canadian Press newspaper. No tyres have been burned at the plant so far as the cement producer waits for industrial approval of the project from the provincial government.

Mark Butler of the Ecology Action Centre said the government’s decision was based on a Dalhousie University engineering study that was too narrow in its focus and wasn't peer reviewed. However the government has said that it used several technical studies to inform its decision. A group of local residents also started legal action in August 2017 on the grounds that the project violated the province's Environment Act.

Canada: Representatives of US and Canadian cement industry unions have met in Toronto. International Brotherhood of Teamsters from the US and Canada, the United Steelworkers from Canada and the US, the International Brotherhood of Boilermakers and the Fédération de l’Industrie Manufacturière from Canada attended the third meeting of the North America Cement Network, according to the IndustriAll Global Union. The participants exchanged ideas about over collective bargaining issues, the current situation in the cement industry and the latest developments in deals such as the CRH purchase of Ash Grove.

The last week marked a step change to the US industry with the news that Ireland’s CRH has agreed to buy Ash Grove Cement. The latter is the largest remaining cement producer still owned by an American company. Its history dates back 135 years to its founding in 1882, with links to the Sunderland family for over a century. Following the acquisition, each of the top five cement producing firms in the US will be operated by multinational corporations based in foreign countries.

Although this scenario is not new to many other countries around the world, it is rare for a nation with a cement industry of this scale. The US is the third biggest cement producer worldwide. Out of the top ten cement producing nations Global Cement Magazine identified in its Top 100 Report 2017 feature in December 2016 only Egypt doesn’t have a local company to match the multinationals. China has China National Building Material (CNBM), for example and India has UltraTech cement and so on and so forth.

The actual sale covers Ash Grove Cement’s eight cement plants and 23 cement terminals, as well as its ready mix concrete and aggregate businesses, for US$3.5bn. Altogether its cement plants have a production capacity of 9.5Mt/yr and this really puts into contrast the Cementir Italia deal last week. HeidelbergCement has agreed to buy that company for around Euro57/t. CRH is buying Ash Grove Cement for US$368/t. That’s more that five times as much!

To be fair they are very different markets, with Italy’s cement sector consolidating near the bottom of a business cycle and the US growing with some promise. For comparison with other recent US acquisitions, CRH is offering to pay about the same as Summit Materials did to Lafarge for a cement plant and seven terminals in mid-2015. Other than that a few of the more recent transactions have been between US$200 – 300/t. The gradual price inflation for cement production capacity indicates that there is confidence in the US cement market.

In terms of CRH’s enhanced presence in North America following the completion of the deal, it currently operates two cement plants in the US: the American Cement Sumterville plant in Florida, a joint venture with Elementia, and the Trident plant in Montana. The CRH US division also runs five terminals in the Midwest and Northeast. This compliments Ash Grove Cement’s presence in the West, Midwest and South. Throw in CRH’s Canadian cement plants in Ontario and Quebec and CRH has the makings of a seriously strong cement business in North America. The only obvious impediment could be the close proximity of the CRH Trident plant and the Ash Grove Cement Montana City plant. Both are in Montana within 115km of each other and they are the only integrated plants in the state. A Federal Trade Commission arranged divestment in this location seems likely.

Ash Grove Cement’s chairman Charlie Sunderland, described CRH as his company’s biggest customer when the acquisition was announced. Buying Ash Grove Cement fills in one more piece in CRH’s construction materials puzzle in North America. Its American divisions have generated more than half of its revenue since at least 2014 dominating asphalt, aggregate and ready mix concrete markets. Yet it has lacked a cement market presence to match this. This changes when the deal with Ash Grove Cement completes.

Canada: McInnis Cement has inaugurated its Port-Daniel–Gascons plant in Quebec. Provincial Prime Minister Philippe Couillard attended the ceremony. First cement at the 2.2Mt/yr plant was produced in June 2017 and the unit has started commercial production since then. Construction at the site started in mid-2014. However, cost overruns saw the government-backed project delayed and then taken over by an investor.

Canada: McInnis, formerly McInnis Cement, has released details about its distribution plan for the Atlantic provinces. The company has acquired two CRH Canada-owned terminals allowing it to access markets in New Brunswick, Nova Scotia and Prince Edward Island. McInnis says it will honour the orders of the clients supplied through those terminals and integrate their current employees. In addition, McInnis has entered into an agreement with CRH Canada and will supply cement for its terminals at Long Pond, Argentia and Corner Brook in Newfoundland directly from McInnis plant in Port-Daniel – Gascons. Deliveries to Newfoundland will begin in the autumn of 2017.

“With the addition of these terminals to our network, we are now able to secure a solid position in this market” said Hervé Mallet, president and chief executive officer (CEO) of McInnis Cement.

The McInnis distribution network includes several facilities: marine terminals in Providence, Rhode Island and Sainte-Catherine, Québec were the first to be built and commissioned. The Oshawa terminal in Ontario has started operation in September 2017. A railway transshipment station in New Richmond, Québec is also operational, and the Bronx marine terminal in New York will join the network in 2018.

Canada: A man has died after falling nearly 10m from a catwalk at Lafarge Canada’s Beachville limestone quarry near Woodstock, Ontario on 23 August 2017. Walter Nuvoloni, 47, was a long-standing purchasing manager at the company. He had been in the position since 2001.

"This is a very difficult and tragic incident and we are deeply saddened at the loss of our colleague,” said Karine Cousineau, Lafarge spokesperson, in a statement. “Our thoughts are with our colleague's friends and family. Lafarge is providing the support of our employee assistance program to help co-workers cope with the loss." Cousineau added that Lafarge Canada would not be commenting further on Nuvoloni's death.

Police initially held the scene before turning over the investigation to the Ontario Ministry of Labour, which is investigating the death. Ontario Provincial Police Constable Stacey Culbert told local press that the ministry will re-contact police if the investigation deems any action to be criminal.

Canada: A group of residents close to the Lafarge Canada Brookfield plant has launched a court challenge arguing the Nova Scotia government's approval of a plan to burn tyres as an alternative fuel at the plant violated the Environment Act.

In his application for a judicial review, lawyer William Mahody wrote that Environment Minister Iain Rankin didn't properly assess the impact of emissions from the Lafarge plant in Brookfield on surrounding areas, stating that was a ‘strong potential for adverse effects’ on surface water, human health and wildlife from the project. The plan has run into criticism from environmental groups, municipal councils and area residents, who prevented a similar proposal a decade ago.
Nova Scotia’s waste diversion agency has shifted a supply of at least 280,000 tyres per year to Lafarge and recently approved the company's environmental application for a one-year pilot project to incinerate the tyres as fuel.

Lafarge says it can't comment on the judicial review. However, Robert Cumming, the environmental director at Lafarge, says research conducted off-site by a Dalhousie University engineer suggests the use of scrap tyres will lower the plant's CO2 emissions. "Our pilot project seeks to validate this evidence gathered from scientific reports and in Dalhousie University laboratories. The research team and Lafarge have committed to sharing the results with the community."

Canada: An agreement has been struck between Lafarge Canada and Metro Vancouver in which Lafarge Canada will use the solids removed during drinking water production by the municipality as an alternative raw material in cement production.

The residuals are the solids removed during the drinking water filtration process and consist of natural sediment and elements from the source water as well as coagulants and polymers from the treatment process. Between them, they have a chemical composition similar to that of red shale, one of Lafarge Canada’s raw materials. This means that the residiuals need not be landfilled and that less virgin red shale must be removed from the ground. The contract is for a minimum of 10,000t/yr.

“We are proud to have this partnership with local government and industry,” said Pascal Bouchard, the plant manager of the Richmond cement plant, which will use the residuals. “These residuals will soon be part of our city landscape, reused as an ingredient in concrete that is used in construction, from sidewalks to skyscrapers. I am hopeful that the research we have undertaken will allow other municipalities to consider industrial re-use options for their water treatment residuals.”

“We are very excited to be working with Lafarge on this innovative project, which uses residuals as a product, while reducing our overall environmental impact,” said Darrell Mussatto, Chair of Metro Vancouver’s Utilities Committee. “Our goal is to recover valuable resources from our utilities, and this project aligns perfectly with what we are hoping to achieve.”